Technology licensing is a strategic legal mechanism enabling companies to commercialize their innovations or access technologies developed by others. Unlike pure software licensing, technology licensing encompasses a broader range of intellectual property: patents, industrial designs, know-how, and trade secrets. As Georgia's economy develops, more businesses are engaging in technology transfer, whether acquiring manufacturing methods from abroad or exporting local innovations to the global market. A properly structured licensing deal protects the technology owner's rights, ensures quality control, and creates a long-term revenue stream through royalties.
What Technology Licensing Services Cover
Specialists on Legal.ge offer full legal support at all stages of technology transfer:
- Patent Licenses: Drafting agreements to transfer rights to use an invention or utility model under exclusive or non-exclusive terms.
- Know-How and Trade Secret Licensing: Legal assurance for transferring non-patentable technological knowledge, recipes, and processes with strict confidentiality protections.
- Franchise Technology Components: Handling the transfer of technological processes and methodologies within franchise agreements.
- Cross-Licensing: Agreements where parties grant each other rights to use their respective technologies to avoid disputes or foster cooperation.
- Technical Assistance Agreements: Regulating services accompanying the license, such as training, implementation, and support.
- R&D Agreements: Defining ownership and licensing terms for technologies created through joint research and development.
Practical Examples and Scenarios
Technology licensing is relevant across various industries:
- Manufacturing Modernization: A Georgian factory purchases a license from a European company to use innovative packaging technology. The contract must regulate not just patent usage, but also equipment supply and staff training.
- University Spin-off: A group of scientists creates new agritech at a university. The technology needs to be licensed to a newly founded startup for commercialization, ensuring the university receives royalties.
- Pharmaceutical Manufacturing: A local company obtains rights to produce a generic drug within a specific territory with the permission of the foreign patent holder.
- Joint Venture: Two companies combine forces to create a new electric motor. They need an agreement on how rights to the new technology will be distributed and who can license it to third parties.
Georgian Legal Framework
The main regulator of technology licensing is the Patent Law of Georgia, which details rules for registering licensing agreements related to patents. A license for a registered patent becomes effective upon registration with Sakpatenti. The Law of Georgia on Design regulates the licensing of industrial designs. For trade secrets and know-how, the Civil Code of Georgia and special provisions on confidential information protection apply. The Law of Georgia on Competition is also crucial, prohibiting licensing terms that restrict market competition (e.g., price-fixing or artificial market segmentation).
The Process: Working with a Specialist
The technology transfer process requires a complex approach:
- Due Diligence: The lawyer verifies the legal status of the technology (is the patent valid, who owns the rights).
- Term Sheet Agreement: Territory, term, exclusivity, and payment scheme (lump sum or royalty) are defined.
- Drafting the Agreement: A complex contract is drawn up covering technical standards, quality control, and ownership of improvements.
- Registration: In the case of patents, the licensing agreement is registered with Sakpatenti to be valid against third parties.
- Monitoring: Legal oversight of contract performance.
Why Legal.ge?
Technology licensing requires not only legal knowledge but also an understanding of industry specifics. Legal.ge gives you access to patent attorneys and intellectual property lawyers experienced in technology transfer. Find a specialist on Legal.ge to ensure full legal protection and commercial success for your technology deals.
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